AI Boom Drives Hon Hai Precision to Increase Server Capacity

As a reflection of its predictions that expenditure on artificial intelligence will remain high, Hon Hai Precision Industry Co. aims to increase server capacity to fulfill the stronger-than-anticipated demand for Nvidia Corp. processors needed to build AI. In line with Nvidia Chief Executive Officer Jensen Huang’s comments from last week, Chairman Young Liu told Bloomberg Television that the demand for the next Blackwell chips was crazy.

Hon Hai Confirms Delay in Nvidia Blackwell Server Shipments to Late Q4 2024

Now under construction in Mexico is the largest server assembly plant in the world, home of Nvidia‘s most cutting-edge Grace Blackwell processors, built by the Taiwanese business. Liu revealed the size of Hon Hai for the first time, stating that it will have a targeted capacity of 20,000 GB200 NVL 72 servers in 2025.

There was a lot of talk that the need for compute may be saturated pretty soon. But it looks like the demand is still growing. So that’s beyond our expectations,

Liu

Liu did, however, confirm the Blackwell supply delay by stating that there was a snag in the GB200 server manufacture. According to him, shipments are now anticipated to begin in the late fourth quarter rather than the early October–December timeframe.

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